Question

Describe a company that you believe represents the 4Ps well and provide examples of why you believe they are successful at it.

Answer 1

Through its successful use of a balanced marketing mix, Nivea Visage Young has managed to create a clear position in the market. It addresses a need felt by a specific niche segment. Traditional distribution methods are balanced by a unique product and updated promotional strategies. This ensures that the brand message reaches the right people at the right time in the right way.

As we see from the Nivea example, it is vital for any company to focus equally on all elements of the marketing mix while planning for a product. Eventually, there may be a need to divert more resources towards one variable such as strong distribution channels over promotional activities. But this needs to come after a clear plan and strategy has been decided upon. An effective marketing mix can mean the difference between a flash in the pan product or one that is bound to become a well-loved classic.

McDonald’s Products (Product Mix)

As a food service business, McDonald’s has a product mix composed mainly of food and beverage products. This element of the marketing mix covers the various organizational outputs (goods and services) that the company provides to its target markets. McDonald’s product mix has the following main product lines:

1. Hamburgers and sandwiches
2. Chicken and fish
3. Salads
4. Snacks and sides
5. Beverages
6. Desserts and shakes
7. Breakfast/All-day breakfast
8. McCafé

Place/Distribution in McDonald’s Marketing Mix

This element of the marketing mix enumerates the venues or locations where products are offered and where customers can access them. Restaurants are the most prominent places where the company’s products are distributed. However, the business utilizes various places as part of this 4P variable. The main places through which McDonald’s distributes its products are as follows:

1. Restaurants
2. Kiosks
3. McDonald’s mobile apps
4. Postmates website and app, and others

McDonald’s Promotion (Promotional Mix)

This element of the marketing mix defines the tactics that the business uses to communicate with customers. Among the 4Ps, this variable focuses on marketing communications with target customers. For example, the company provides new information to persuade consumers to purchase new products. McDonald’s uses the following tactics in its promotional mix, arranged according to significance in the business:

1. Advertising (most significant)
2. Sales promotions
3. Public relations
4. Direct marketing

McDonald’s Prices and Pricing Strategies

This element of the marketing mix specifies the price points and price ranges of the company’s food and beverage products. The aim is to use prices to maximize profit margins and sales volume. McDonald’s uses a combination of the following pricing strategies:

1. Bundle pricing strategy
2. Psychological pricing strategy

In the bundle pricing strategy, McDonald’s offers meals and other product bundles for prices that are discounted, compared to purchasing each item separately. For example, customers can purchase a Happy Meal or an Extra Value Meal to optimize cost and product value. On the other hand, in psychological pricing, the company uses prices that appear significantly more affordable, such as $__.99 instead of rounding it off to the nearest dollar. This pricing strategy helps encourage consumers to purchase the company’s products based on perceived affordability. Thus, this element of McDonald’s marketing mix highlights the importance of bundle pricing and psychological pricing to encourage customers to buy more products.